What is Marketing

What is Marketing?
Marketing is managing profitable customer relationships
Attracting new customers
Retaining and growing current customers
“Marketing” is NOT synonymous with “sales” or “advertising”
Kotler’s social definition:
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and
exchanging products and value with others.”
Marketing Defined
Marketing is the process by which companies create value for customers and build strong customer relationships to capture value from
customers in return .
What is Marketed ?
Many Things Can Be Marketed!
Goods ------------- ( Fresh & cannded food products , cars , television sets , machines , cosmatics , detergents )
Services ------------( Hotels , maintenance , doctors , car rental firms , bankers , lawyers , engineers )
Experiences -------( spending a week at a baseball camp playing with retired baseball greats )
Events --------------( Olympics , the world cup , movies festivals , trade shows )
Persons ------------( Artists , musicans , physicians , financiers , high-profile lawyers )
Places --------------( Cities , states , regions , nations )
Properties ---------( real estate , stocks &bonds , investments companies )
Organizations -----( universities , museums )
Information -------( magazines that supply information about cars , computers , fashions )
Ideas -----------------( marketers sell products & services to deliver some ideas or benefits , promoting healthy & social behaviors )
a- Understanding the Marketplace and Customer Needs
Core Marketing Concepts :-
1- Customer needs, wants, and demands
 The marketer must try to understand the target market's needs, wants and demand.
Needs are states of deprivation & the basic human requirements.
a- Physical needs for food, clothing , warmth , safety .
b- Social needs for belonging and affection .
c- Individual needs for knowledge and self-expression .
• Marketers do not create needs ; Needs preexist marketers.
Marketers influence wants, simply giving customers what they want isn't enough to gain an edge,
companies must help customers learn what they want.
Wants are the form human needs take as they are shaped by culture and individual personality .
Needs become wants when they are directed to specific objects that might satisfy the need.
An American needs food but wants a big Mac, French fries, and a soft drink .
Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes;
only a few are willing and able to buy one . { human wants backed by buying power ( purchasing power ) }.
Marketing must learn about and understand customer needs, wants, and demands.
The company conduct consumer research and analyze customer data.
2 - Market Offerings— Including Products , Services , and Experiences
 Market offerings are some combination of products, services, information, or experiences offered to a market
to satisfy a need or want .
 Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs.
 Exchange is the act of obtaining a desired product from someone by offering something in return.
3- Customer Value and Satisfaction
 The offering will be successful if it delivers value and satisfaction to the target buyer.
 The buyer chooses between different offerings based on which he/she perceives to deliver the most
 Value reflects the sum of the perceived benefits and costs to customers.
 Satisfaction reflects a person`s judgments of a product`s perceived performance ( or outcome) in
relationship to expectations.
 If the performance falls short of expectations, the consumer is dissatisfied and disappointed.
 If it matches expectations, the customer is satisfied .
 If it exceeds them, the customer is delighted.
• Customers
( Value and satisfaction ) .
• Marketers
( Set the right level of expectations -- { Not too high or too low } ) .
4- Exchanges and Relationships
 Exchange is the act of obtaining a desired object from someone by offering something in return.
 Relationships consist of actions to build and maintain desirable relationships .
• Exchange is the core concept of marketing, is the process of obtaining a desired product from someone
by offering something in return. For exchange potential to exist , five conditions must be satisfied:1. There are at least two parties.
2. Each party has something that might be of value to the other party.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the exchange offer.
5. Each party believes it is appropriate or desirable to deal with the other party.
When an agreement is reached, we say that a transaction takes place.
• A transaction is a trade of values between two or more parties
5- Markets
A market is the set of actual and potential buyers of a product.
These buyers share a particular need or want that can be satisfied through exchange relationships.
Sellers must Search for buyers ,identify their needs, design good marketing offers, set prices for them, promote
them, and store and deliver them.
Marketing system :consists of all of the actors (suppliers, company, competitors, intermediaries, and end users) in the system
who are affected by major environmental forces .
* Technological
* Political–legal
* Socio-cultural
b- Designing a Customer-Driven Marketing Strategy
Marketing management
is the art and science of choosing target markets and getting, keeping, and growing customers
through creating , delivering and communicating superior customer value and building profitable relationships with
them .
The aim of marketing is to know and understand the customer so well that the product or service fits him and
sells itself.
Marketing Management is :•
Customer Management:
 Marketers select customers that can be served well and profitably.
Demand Management:
 Marketers must deal with different demand states ranging from no demand to too much demand.
To design a winning marketing strategy the marketing manager must answer two important questions:
a) What customers will we serve ?( what our target market ?) .
b) How can we best serve these customers ? ( what`s our value proposition?) .
Selecting Customers to Serve
Market segmentation:-
Dividing the markets into segments of customers.
Target marketing:-
Which segments to go after .
De-marketing:Marketing to reduce demand temporarily or permanently; the aim is not to destroy
demand but to reduce or shift it.
Choosing a Value Proposition
The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs
Marketing Management Orientations
Production concept
Product concept
Selling concept
Marketing concept
Societal marketing concept
Production concept
is the idea that consumers prefer products that are widely available or highly affordable
& inexpensive .
Product concept
is the idea that consumers prefer products that offer the most quality, performance, and
features for which the organization should therefore devote its energy to making continuous improvements .
Selling concept
is the idea that consumers will not buy enough of the firm’s products unless it undertakes
a large scale selling and promotion effort .
Marketing concept
is the idea that achieving organizational goals depends on knowing the needs and wants
of the target markets and delivering the desired satisfactions better than competitors do .
Societal marketing concept is the idea that a company should make good marketing decisions by considering
consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests .
The Production Concept
The production concept holds that consumers will favor products that are available and highly affordable.
Management should focus on improving production and distribution efficiency .
This concept is one of the oldest orientation that guide sellers.
The production concept is still a useful philosophy in two types of situations:
1- When the demand for a product exceeds the supply, the management should look for ways to increase
2- When the product`s cost is too high and improved productivity is needed to bring it down.
* On the other hand, the production concept can lead to marketing myopia.
* Companies adopting this orientation run a major risk of focusing only on their own products, and losing sight of
the real objective of satisfying customer needs.
The Product Concept
The production concept holds that consumers will favor products that offer the most in quality performance, and
innovative features.
Marketing strategy focuses on making continuous product improvement s .
depending on products will not sell unless producers design, package and price it attractively and places it in
convenient distribution channels.
The selling Concept
Consumers will not buy enough of the firm`s products unless it undertakes a large-scale selling and promotion
effort .
This concept fit only unsought products those that buyers do not normally think of buying such as insurance .
Most firms practice the selling concept when they face overcapacity .
Their aim is to sell what they make rather than make what the market want, and this strategy carries high risks,
it focus on creating sales transactions rather than on building long-term customer relationship.
The Marketing concept
Holds that achieving organizational goals on knowing the needs and wants of target markets and delivering the
desired satisfactions better than competitors do..
Social Marketing Concept
A principle of enlightened marketing that make a good marketing decisions by considering consumer`s wants, the
company`s requirements , consumers` long-run interests and society`s long run interests ( deliver value to customers
in a way that maintains or improves both the consumer`s and the society well – being).
C- Preparing an Integrated Marketing Plan and Program (Construct a marketing plan that delivers superior value)
*Marketing Mix
is the set of tools (four Ps) the firm uses to implement its marketing strategy .
The four p`s represent the seller`s view of the marketing tools available for influencing buyers.
From a buyer`s point of view , each marketing tool is designed to deliver a customer benefit.
consumer wants are the drivers of all strategic marketing decisions.